Board Meeting Details

The Board of Directors meeting was held on 26th May 2026 from 1:30 PM to 5:30 PM IST where they considered and approved:

  • Audited Financial Results (Standalone & Consolidated) for quarter & year ended March 31, 2026
  • Statement on Impact of Auditor's Qualifications
  • Creation of UK wholly-owned subsidiary for overseas fund-raising

Financial Results - Consolidated (Rs. in Lakhs)

Quarterly Performance (Q4 FY26 vs Q4 FY25):

  • Total Revenue: ₹526.78 vs ₹662.94 (down 20.5%)
  • Total Expenses: ₹875.41 vs ₹854.03 (up 2.5%)
  • Profit before tax: (₹593.08) vs (₹191.09)
  • Net Profit: (₹750.60) vs (₹433.69)
  • EPS: (₹0.46) vs (₹0.34)

Annual Performance (FY26 vs FY25):

  • Total Revenue: ₹4,075.43 vs ₹3,580.98 (up 13.8%)
  • Total Expenses: ₹3,696.12 vs ₹3,230.35 (up 14.4%)
  • Profit before tax: ₹134.85 vs ₹350.63 (down 61.5%)
  • Net Profit: ₹0.57 vs ₹170.54 (down 99.7%)
  • EPS: ₹0.00 vs ₹0.13

Key Financial Position (Consolidated as at March 31, 2026):

  • Paid-up equity share capital: ₹16,100.22 lakhs (up from ₹12,880.17 lakhs)
  • Total Assets: ₹34,771.73 lakhs
  • Total Liabilities: ₹3,959.69 lakhs
  • Net Worth: ₹30,740.88 lakhs
  • Cash and cash equivalents: ₹873.45 lakhs
  • Bank balances: ₹1,283.69 lakhs

Financial Results - Standalone (Rs. in Lakhs)

Quarterly Performance (Q4 FY26 vs Q4 FY25):

  • Total Revenue: ₹545.44 vs ₹643.77 (down 15.3%)
  • Total Expenses: ₹735.22 vs ₹745.73 (down 1.4%)
  • Profit before tax: (₹434.23) vs (₹101.96)
  • Net Profit: (₹630.49) vs (₹314.12)
  • EPS: (₹0.39) vs (₹0.24)

Annual Performance (FY26 vs FY25):

  • Total Revenue: ₹3,188.89 vs ₹2,725.00 (up 17.0%)
  • Total Expenses: ₹2,774.81 vs ₹2,342.30 (up 18.5%)
  • Profit before tax: ₹169.64 vs ₹382.70 (down 55.7%)
  • Net Profit: ₹26.62 vs ₹233.06 (down 88.6%)
  • EPS: ₹0.02 vs ₹0.18

Exceptional Items

The company provided ₹244.45 lakhs as write-off of interest claims on TANGEDCO & BESCOM for late settlement of bills to avoid repeated audit qualification. Realization of the claim, if any, will be offered as income in the year of receipt.

Fund Raising Through Subsidiary

The Board resolved to invest and create a Wholly Owned Subsidiary in the United Kingdom named Nova Future Power Ltd to facilitate fund-raising through issue of overseas securities. Key details:

  • Target entity: Nova Future Power Ltd
  • Industry: Power
  • Acquisition consideration: £1 (One Pound) cash
  • Shareholding acquired: 100%
  • Time period for completion: 3 months
  • Regulatory approval required: Reserve Bank of India
  • Company incorporated on 16th April 2026 in England, yet to commence operations
  • Not a related party transaction

Large Corporate Status Disclosure

The company confirmed it is not a "Large Corporate" as per SEBI Operational Circular No. SEBI/HO/DDHS/P/CIR/2021/613 dated August 10, 2021 and SEBI Circular No. SEBI/HO/DDHS/DDHSPOD1/P/CIR/2023/172 dated 19th October 2023.

Borrowing details:

  • Outstanding Qualified Borrowings at FY start: ₹1.01 crores
  • Outstanding Qualified Borrowings at FY end: ₹9.51 crores
  • Incremental borrowing during year: ₹8.50 crores
  • Borrowings through debt securities: Nil
  • Highest credit rating during previous FY: Not provided

Auditor's Qualified Opinion

Statutory auditors Venkatesh & Co issued qualified opinions on both standalone and consolidated financial results citing three main issues:

Qualification 1: Suzlon Arbitration Claims (₹2,252.99 lakhs impact)

  • Company filed arbitration claim of ₹9,083.39 lakhs against Suzlon Group
  • ₹1,407.40 lakhs paid to Suzlon Global Services Ltd accounted as advance without adequate audit evidence
  • ₹845.59 lakhs recognized as compensation receivable from Suzlon Energy Ltd without counterparty confirmation
  • Accounting treatment departs from Ind AS requirements

Qualification 2: Bank of Baroda Claim (₹102 lakhs impact)

  • ₹102 lakhs recognized as recoverable from Bank of Baroda based on legal claim pending since 2007
  • Lack of confirmation or sufficient audit evidence
  • Not in compliance with Ind AS 37 and Ind AS 109

Qualification 3: Goodwill Impairment (₹7,454.69 lakhs)

  • Goodwill of ₹7,454.69 lakhs inherited through amalgamation of Ind Eco Ventures Limited
  • Company has not carried out impairment assessment/test as required under Ind AS
  • Unable to determine if impairment loss required

Impact of Audit Qualifications

Management provided statement on impact of audit qualifications showing significant adjustments if qualifications were addressed:

Consolidated Impact:

  • Net Profit would be (₹2,220.14) lakhs instead of ₹134.85 lakhs
  • EPS would be (₹1.60) instead of ₹0.02
  • Total Assets would be ₹32,416.74 lakhs instead of ₹34,771.73 lakhs
  • Net Worth would be ₹28,385.89 lakhs instead of ₹30,740.88 lakhs

Standalone Impact:

  • Net Profit would be (₹2,185.35) lakhs instead of ₹169.64 lakhs
  • EPS would be (₹1.58) instead of ₹0.02
  • Total Assets would be ₹32,431.42 lakhs instead of ₹34,786.41 lakhs
  • Net Worth would be ₹28,470.24 lakhs instead of ₹30,825.23 lakhs

Management's Response to Qualifications

For Suzlon claims: Company initiated arbitration proceedings and believes advance payment was legitimate through banking channels. Suitable accounting entries will be passed based on arbitration outcome.

For Bank of Baroda claim: Case is under progress in Bombay High Court for enforcement of bank guarantee of ₹100 lakhs with interest. Appropriate adjustments will be made based on case outcome.

For Goodwill: Management reviewed goodwill and found no impairment indicators as windmill assets remain operational with stable revenue and policy support. Will evaluate impairment indicators in FY27.

Cash Flow Information (Consolidated)

  • Net cash from operating activities: ₹277.19 lakhs
  • Net cash used in investing activities: (₹3,379.93) lakhs
  • Net cash from financing activities: ₹3,854.84 lakhs
  • Net increase in cash: ₹752.10 lakhs

Segment Information

The company operates only in one segment (power generation). Figures for previous periods have been regrouped to confirm to current period classification.

Other Disclosures

The company evaluated impact of new labor codes (Code on Wages 2019, Industrial Relations Code 2020) and concluded no material impact expected on financial results.